I have two credit cards and $300 extra t
For reference only. Not investment advice.
Question
I have two credit cards and $300 extra this month (so $445 total monthly budget for debt payments).
- Card A: $3,500 balance at 22% AP (minimum payment $105/month).
- Card B: $1,200 balance at 14% AP (minimum payment $40/month).
ent, utilities, medicine, and food are already completely covered.
Should I put the extra $300 toward Card A or Card B? What are the payoff times and total interest under Avalanche vs Snowball?
Answer
ent, utilities, medicine, and food are already covered, so this is a repayment comparison, not a crisis ladder.
| Strategy | Extra goes first | Months to debt-free | Total interest |
|---|---|---|---|
| Avalanche | Card A (22%) | 12 | 483.98 USD |
| Snowball | Card B (smaller) | 12 | 549.52 USD |
What each buys:
- Avalanche puts extra on Card A first. Total interest $483.98. Card A clears in month 10, Card B in month 12.
- Snowball puts extra on Card B first. Total interest $549.52. Card B clears in month 4, Card A in month 12.
Both routes finish in the same 12 months because Card A's $105 minimum plus the $300 extra already retires Card B's $1,200 before the total budget is exhausted either way. The difference is purely in total interest paid — Avalanche saves about $65.54 by carrying the higher AP shorter.
Finance charge ≠ ranking key: each card's own interest = balance × its statement AP. Avalanche pays the higher AP down first to minimize interest; Snowball pays the smaller balance first to free up a card sooner. Both are valid. Pick "save interest" or "clear one balance first" — that's the trade-off.
Source: this turn's `payoff.py` ok:true stdout (monthly compounding, model not prediction).
Would you like me to save this as your September 2026 snapshot so you can carry it into next month?